MITEK SYSTEMS INC (MITK) Stock Fundamental Analysis
NASDAQ:MITK - Nasdaq - US6067102003 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to MITK. MITK was compared to 282 industry peers in the Software industry. While MITK is still in line with the averages on profitability rating, there are concerns on its financial health. MITK may be a bit undervalued, certainly considering the very reasonable score on growth
1. Profitability
1.1 Basic Checks
In the past year MITK was profitable.
In the past year MITK had a positive cash flow from operations.
MITK had positive earnings in each of the past 5 years.
In the past 5 years MITK always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 3.13%, MITK is in the better half of the industry, outperforming 72.69% of the companies in the same industry.
The Return On Equity of MITK (6.05%) is better than 74.47% of its industry peers.
With a decent Return On Invested Capital value of 4.11%, MITK is doing good in the industry, outperforming 73.05% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for MITK is significantly below the industry average of 12.28%.
The last Return On Invested Capital (4.11%) for MITK is above the 3 year average (3.14%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.13% | ||
| ROE | 6.05% | ||
| ROIC | 4.11% |
ROA(3y)1.2%
ROA(5y)2.02%
ROE(3y)2.4%
ROE(5y)3.45%
ROIC(3y)3.14%
ROIC(5y)3.84%
1.3 Margins
Looking at the Profit Margin, with a value of 7.51%, MITK is in the better half of the industry, outperforming 74.47% of the companies in the same industry.
In the last couple of years the Profit Margin of MITK has declined.
MITK has a Operating Margin of 11.26%. This is in the better half of the industry: MITK outperforms 78.01% of its industry peers.
In the last couple of years the Operating Margin of MITK has declined.
MITK's Gross Margin of 85.84% is amongst the best of the industry. MITK outperforms 93.97% of its industry peers.
MITK's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.26% | ||
| PM (TTM) | 7.51% | ||
| GM | 85.84% |
OM growth 3Y-43.54%
OM growth 5YN/A
PM growth 3Y-34.17%
PM growth 5YN/A
GM growth 3Y-0.79%
GM growth 5Y0.08%
2. Health
2.1 Basic Checks
MITK has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, MITK has less shares outstanding
MITK has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, MITK has a worse debt to assets ratio.
2.2 Solvency
MITK has an Altman-Z score of 1.75. This is a bad value and indicates that MITK is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.75, MITK is in line with its industry, outperforming 45.04% of the companies in the same industry.
MITK has a debt to FCF ratio of 3.19. This is a good value and a sign of high solvency as MITK would need 3.19 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 3.19, MITK is in the better half of the industry, outperforming 63.83% of the companies in the same industry.
A Debt/Equity ratio of 0.68 indicates that MITK is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.68, MITK is not doing good in the industry: 68.79% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.68 | ||
| Debt/FCF | 3.19 | ||
| Altman-Z | 1.75 |
ROIC/WACC0.43
WACC9.48%
2.3 Liquidity
A Current Ratio of 1.04 indicates that MITK should not have too much problems paying its short term obligations.
MITK has a worse Current ratio (1.04) than 73.40% of its industry peers.
A Quick Ratio of 1.04 indicates that MITK should not have too much problems paying its short term obligations.
MITK has a Quick ratio of 1.04. This is in the lower half of the industry: MITK underperforms 72.34% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.04 | ||
| Quick Ratio | 1.04 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 49.32% over the past year.
Measured over the past years, MITK shows a quite strong growth in Earnings Per Share. The EPS has been growing by 17.42% on average per year.
The Revenue has been growing slightly by 7.76% in the past year.
The Revenue has been growing by 15.26% on average over the past years. This is quite good.
EPS 1Y (TTM)49.32%
EPS 3Y8.58%
EPS 5Y17.42%
EPS Q2Q%50%
Revenue 1Y (TTM)7.76%
Revenue growth 3Y12.83%
Revenue growth 5Y15.26%
Sales Q2Q%10.56%
3.2 Future
The Earnings Per Share is expected to grow by 2.38% on average over the next years.
Based on estimates for the next years, MITK will show a small growth in Revenue. The Revenue will grow by 6.37% on average per year.
EPS Next Y-7.92%
EPS Next 2Y3.34%
EPS Next 3Y2.38%
EPS Next 5YN/A
Revenue Next Year3.27%
Revenue Next 2Y5.66%
Revenue Next 3Y6.37%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 8.59 indicates a reasonable valuation of MITK.
93.26% of the companies in the same industry are more expensive than MITK, based on the Price/Earnings ratio.
MITK is valuated cheaply when we compare the Price/Earnings ratio to 27.18, which is the current average of the S&P500 Index.
MITK is valuated reasonably with a Price/Forward Earnings ratio of 9.13.
Compared to the rest of the industry, the Price/Forward Earnings ratio of MITK indicates a rather cheap valuation: MITK is cheaper than 93.26% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 35.34. MITK is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.59 | ||
| Fwd PE | 9.13 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MITK is valued cheaper than 96.10% of the companies in the same industry.
MITK's Price/Free Cash Flow ratio is rather cheap when compared to the industry. MITK is cheaper than 95.39% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.05 | ||
| EV/EBITDA | 7.19 |
4.3 Compensation for Growth
MITK has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.49
EPS Next 2Y3.34%
EPS Next 3Y2.38%
5. Dividend
5.1 Amount
No dividends for MITK!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
9.36
-0.23 (-2.4%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners78.41%
Inst Owner Change0%
Ins Owners2.29%
Ins Owner Change4.07%
Market Cap426.44M
Analysts81.67
Price Target13.26 (41.67%)
Short Float %5.17%
Short Ratio4.9
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)19.02%
Min EPS beat(2)1.42%
Max EPS beat(2)36.62%
EPS beat(4)3
Avg EPS beat(4)30.19%
Min EPS beat(4)-5.73%
Max EPS beat(4)88.46%
EPS beat(8)5
Avg EPS beat(8)12.66%
EPS beat(12)8
Avg EPS beat(12)16.56%
EPS beat(16)12
Avg EPS beat(16)18.92%
Revenue beat(2)2
Avg Revenue beat(2)4.07%
Min Revenue beat(2)0.88%
Max Revenue beat(2)7.26%
Revenue beat(4)3
Avg Revenue beat(4)0.65%
Min Revenue beat(4)-8.11%
Max Revenue beat(4)7.26%
Revenue beat(8)4
Avg Revenue beat(8)0.1%
Revenue beat(12)7
Avg Revenue beat(12)3.39%
Revenue beat(16)9
Avg Revenue beat(16)3.47%
PT rev (1m)0%
PT rev (3m)-0.76%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-23.65%
EPS NY rev (1m)-1.51%
EPS NY rev (3m)-2.44%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-4.08%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.12%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.59 | ||
| Fwd PE | 9.13 | ||
| P/S | 2.4 | ||
| P/FCF | 9.05 | ||
| P/OCF | 8.81 | ||
| P/B | 1.94 | ||
| P/tB | 9.07 | ||
| EV/EBITDA | 7.19 |
EPS(TTM)1.09
EY11.65%
EPS(NY)1.03
Fwd EY10.95%
FCF(TTM)1.03
FCFY11.05%
OCF(TTM)1.06
OCFY11.35%
SpS3.89
BVpS4.83
TBVpS1.03
PEG (NY)N/A
PEG (5Y)0.49
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.13% | ||
| ROE | 6.05% | ||
| ROCE | 8.69% | ||
| ROIC | 4.11% | ||
| ROICexc | 6.42% | ||
| ROICexgc | 22.72% | ||
| OM | 11.26% | ||
| PM (TTM) | 7.51% | ||
| GM | 85.84% | ||
| FCFM | 26.56% |
ROA(3y)1.2%
ROA(5y)2.02%
ROE(3y)2.4%
ROE(5y)3.45%
ROIC(3y)3.14%
ROIC(5y)3.84%
ROICexc(3y)4.75%
ROICexc(5y)6.3%
ROICexgc(3y)31.47%
ROICexgc(5y)27.48%
ROCE(3y)4.04%
ROCE(5y)4.94%
ROICexcg growth 3Y-20.18%
ROICexcg growth 5YN/A
ROICexc growth 3Y-40.05%
ROICexc growth 5YN/A
OM growth 3Y-43.54%
OM growth 5YN/A
PM growth 3Y-34.17%
PM growth 5YN/A
GM growth 3Y-0.79%
GM growth 5Y0.08%
F-Score8
Asset Turnover0.42
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.68 | ||
| Debt/FCF | 3.19 | ||
| Debt/EBITDA | 4.13 | ||
| Cap/Depr | 7.82% | ||
| Cap/Sales | 0.72% | ||
| Interest Coverage | 15.68 | ||
| Cash Conversion | 133.14% | ||
| Profit Quality | 353.47% | ||
| Current Ratio | 1.04 | ||
| Quick Ratio | 1.04 | ||
| Altman-Z | 1.75 |
F-Score8
WACC9.48%
ROIC/WACC0.43
Cap/Depr(3y)7.2%
Cap/Depr(5y)9.44%
Cap/Sales(3y)0.74%
Cap/Sales(5y)0.83%
Profit Quality(3y)714.7%
Profit Quality(5y)578.49%
High Growth Momentum
Growth
EPS 1Y (TTM)49.32%
EPS 3Y8.58%
EPS 5Y17.42%
EPS Q2Q%50%
EPS Next Y-7.92%
EPS Next 2Y3.34%
EPS Next 3Y2.38%
EPS Next 5YN/A
Revenue 1Y (TTM)7.76%
Revenue growth 3Y12.83%
Revenue growth 5Y15.26%
Sales Q2Q%10.56%
Revenue Next Year3.27%
Revenue Next 2Y5.66%
Revenue Next 3Y6.37%
Revenue Next 5YN/A
EBIT growth 1Y700.3%
EBIT growth 3Y-36.3%
EBIT growth 5YN/A
EBIT Next Year19.39%
EBIT Next 3Y21.32%
EBIT Next 5YN/A
FCF growth 1Y72.26%
FCF growth 3Y-5.59%
FCF growth 5Y18.06%
OCF growth 1Y71.49%
OCF growth 3Y-5.32%
OCF growth 5Y17.33%